it's like dell. i want nothing to do with it. why? the ipad trumps all. there's always a bull market somewhere and i promise to find it for you right here at "mad money." i'm jim cramer. see you tomorrow. hey, larry, what do you have for us? all right, jimmy. the stock market magic of fed pump priming could be a snare and a delusion. good evening, everyone. i i'm larry kudlow. this is "the kudlow report." our top story tonight, i have been hollering this from the mountains for weeks. we will be in recession unless the fiscal cliff is fixed. today, the congressional budget office crunched the numbers to say a recession will actually happen if there is no fix. and unfortunately for the fourth straight year, a $1 trillion budget deficit. they are calling for a 9% unemployment rate for next year and the gdp of negative 0.5%. but the tax hike will kill the economy, not spending cuts.

we are going to get into that in a moment. meanwhile, the latest federal reserve minutes show bernanke and company clearly poised to add stimulus to the economy. surprisingly, stocks had very little reaction to this. the dow fell 31 points on the day. gold and oil rallied. i don't think more quantitative easing from the fed will do any good at all for this anemic economy. meanwhile, paul ryan takes aim at obama's imaginary recovery and calls for full scale tax reform to grow the economy. i will be talking with the vice presidential hopeful exclusively tomorrow. first up tonight let's get a new look at the cbo estimates, putting the economy on recession alert and more massive budget deficits. let me give you charts on this. first of all, they updated the deficits. unfortunately we are now still running trillion dollar deficits. this will be the fourth year in a row.

and you can see back many the 2000s it was really a different story. and you can see things have gotten worse. i understand president obama inherited a mess. i get it. i don't know. here, here, here. one has to wonder why do we continue with trillion dollar deficits, too much spending and too little growth? this comes from the cbo. next up, real gdp. this is cbo forecast. here is basically what they are saying. this is the fiscal cliff recession. it's not nearly as bad, not nearly as bad as, of course, what we had in 2009. but this whole story, running about 2%. it's going to drop down into a negative half a percent. that's not good for the country. that's not good for the workforce. that is not good for anybody. i don't care what your politics are. we do not need another recession. all right. let's discuss this. we have two smart guys. dean baker is codirector of the

center for economic and policy research. welcome back dave malpass, former reagan deputy assistant treasury secretary. they call it the fiscal cliff. i see it as a tax hike. if they don't renew the bush tax hikes across the board that sinks the economy. what's your take? >> we should be focused on the tax increase. the private sector treats government spending as a tax. you're going to have to pay at some time. cutting government spending is not going to be as bad for the economy as increasing taxes. larry, your chart under stated the depth of the recession that cbo is talking about because if you compare it to previous recessions, this one that cbo is talking about next year is worse than the one in 2001 or the one in 1991. >> so this is serious business. that's what you're saying. >> it's really big. not bigger than what happened in 2008. but it's more than a double dip.

it's a second big recession. >> let's run this again. we can do it one more time. hold on a second. let's run it again. here is what they are saying right here. >> that one is bigger than if you went all the way back. back in 1991. that one's bigger than that. >> dean baker, do you agree with the cbo that we are headed for recession if we don't fix the fiscal cliff and, b, do you think it's the huge tax hike on the table that will do us in? >> cbo does projections different from the way you and your guests there does. they think the cuts in spending hurt the economy. if we are talking about cbo numbers they are saying the cuts in spending will hurt the economy. we should keep in mind this isn't a fiscal cliff in the sense that anything happens january 1. those projections say not only that we don't do anything by january 1. we don't do anything by december

31 of 2013. we go the whole year, let the tax cuts go. you go away in full. don't take back any of them. also have $100 billion cut in spending. that's a year-long process. this isn't something that happens january 1. we don't do anything all year. the point being in president and congress go home at christmas, again, assuming president obama is re-elected. if not, different story. they go home at christmas, come back january 3, 5, whatever date we are looking at and they sit down, work on it and come up with a deal january 15, no big deal. >> i don't know. dave, here is my look. i think we need growth. i think president obama should be focused on growth. it looks to me like romney and ryan are getting focused on growth. i say this. extend all the bush tax cuts. let's have balanced spending reduction. let's approve the keystone pipeline. bang, bang, bang. get this thing done before the election and we can save the

economy. that's my kudlow little simplified growth program. >> right. think if president obama announced those or suggested those, he would win re-election easily. >> you're right. i hate to say it. but it would. >> he's giving you 98% of your tax cut, 98% of the population. this is rhetoric. i'm happy to argue with you. we can't find the growth numbers. >> oh, come on. dave, what are you going to say? you're a growth guy? i'm a growth guy. if a democratic president provides pro growth policy, i'm all for it. he's not going that direction. >> the cbo numbers coming back to dean's point about whether this is spending cuts or tax increases, the cbo numbers show that the spending in 2013 in fy 13 is just as big as in fy 12. when people are talking about the fiscal cliff you have to be

careful. they are saying the government is going to keep spending 3.6 trillion dollars and going to increase the taxes. >> let me explain how cbo does the numbers. if you don't increase government spending at least in step with inflation and that's what you are getting here, that's a cut. i don't care what you call it. that's the way cbo models it. i know these people. i work with the models. that's a cut. it's hitting the economy. that's the way the numbers come from. if uh you want to use the numbers, that's where they are coming from. >> i know. that's putting a framework that government always grows and that's the problem that the private sector is confronting. they are looking at this enormous washington that plans to grow as fast as inflation or more out into the future. that's the problem. >> you're welcome not to like it. those are where cbo gets the numbers. >> dean baker, you will disagree, but i want to make my case. more government spending has done more harm to this economy than almost anything i can think

of. getting that spending rate up to 24%, 25% of gdp from 20% of gdp has sucked private capital out to finance transfer payments and state and local government unions. it's done nothing to help the economy. as alan greenspan told me one or two months ago when i interviewed him, it's had a negative effect. >> greenspan is the guy who missed the housing bubble, larry. >> private sector resources. lower spending would say lower tax rates. >> i wouldn't rely on him as an authority. he made the biggest blooper of all time. >> david, i think spending increases have been one of the most insidious damaging, negative things to happen to the economy. that's why this is the worst recovery in post war history. >> i think that's right. the weakness in the economy is in part because the government plans to spend more. also because the fed plans to buy up the national debt which causes a great uncertainty,

overhang on the market. >> investments as high as a shared gdp as it was before the downturn. i don't see where's the lost investment. >> equipment investment. in real estate, no one's going to build malls and office buildings with vacancies everywhere. that's nuts. >> you need long term investment in the economy to create future growth. that's just not happening right now with this giant tax increase coming. one of the things that has to concern people is if president obama could assure his re-election by simply giving a nod to the point that we don't want to have a crisis on taxes on january 1, if we would nod to that. >> it's not a crisis. not a crisis. >> are you saying it's not a crisis? >> absolutely. >> we have a giant crisis. >> it's not a crisis. >> 8.2% unemployment.

not a crisis. >> i have to get out of here. i tell you what. crisis or no crisis, i'm saying this is no time to experiment. we need pro growth policies to get confidence and certainty and incentives. we cannot go through another recession in this country. we cannot. it is absolutely wrong. anyway, we'll continue this. dean baker, thank you as always. david malpass, thank you. coming up, get ready for pump priming. easy money qe3. it looks like the top fed officials are leaning strongly in favor of yet another round of money-printing stimulus. do you know what, folks? it won't do a bit of good. anyway, we'll ask the experts, brian westbury of first trust and art hogan. later on the freedom manifesto. steve forbes makes the case for free markets versus big government, the story of the election. free market capitalism is the best path to prosperity.

my pal steve forbes has the story right. we'll be right back. [ male announcer ] now you can swipe...

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let's do some stock market work. even after the fed's easy money minutes today, share prices didn't do much of anything. dow was off 31. the s&p flat, the nas up 6. you know the old time fed money pumping fix? e i think it lost its magic. it could be a snare and a delusion. i hope the short term traders are listening to me.

you proceed at your own fed risk. let's go to brian westbury from first trust advisers. i laughed tie. easy money minutes. the fed is leaning toward whatever, quantitative, three, buy bonds, more money into the economy. if it would have worked it would have worked. here we go again. stocks didn't hardly do anything. >> yeah. >> do you think the market has learned that the fed is to some extent a snare and a delusion? >> yeah. i think they have, larry. you know, i don't even believe qe-1 and 2 have lifted stocks. if you really dig into the market itself prices are up but pe ratios today are lower than they were before qe-1 started. so if quantitative easing really caused stock prices to go up we would see p.e. ratios higher. they are not higher. let me make one more point. if anyone can look at me with a straight face and really say

that the economy needs more money today that there is a problem that there is a lack of money in the economy, i will be amazed. i don't think anybody can actually look at me with a straight face and say that. we have money everywhere. the problem is not the fed. the problem is taxes, spending and regulation. >> the problem is nobody wants to use the money. art hogan, on top of this, we have a chance in dollar terms for a $440 billion tax hike. i'm talking this coming year. 2013. higher marginal tax rates and anti-growth incentives. how high can a stock market go under these conditions? >> well, that's the lynchpin. that's what's not being discussed. hopefully what will be discussed which is the next major topic that needs to be discussed and probably comes out in jackson hole is it's not monetary policy. it's fiscal policy. we need to get our house in

order. i think ben bernanke will do a great job if he focuses more on the fact that we need fiscal policy than new monetary policy at jackson hole. there is a possibility for him to make a difference. he's been railing against the fact that monetary policy can't do it by itself. it needs to be coupled with intelligence, thought out and coordinated fiscal policy which we don't have now. the other thing to brian's point, we are awash with liquidity but it is stuck. it's not being lent out. it's not just a demand issue but a willingness to land and the biggest piece is small, medium businesses that need to get more of the liquidity out there. we need to get it in the hands of the people that can use it to create jobs. >> brian, gold continued its rally. to me gold is signalling easy money from the fed. probably from the european central bank as well. i notice oil continued its rally. oil is interesting, too. on top of our domestic problems we have a threat of a war with israel and iran.

>> right. >> i don't have a good feeling about the market. you know me. i prefer to be optimistic. >> right. >> the economy looks lousy. the fiscal trap looks lousy. the fed is doing goofy things. we have bad stuff going on internationally in the middle east and europe. >> right. when you look at gold at 16.50 an ounce, oil at 97 dollars a barrel, it is really hard to justify more money in the system. to art's point, i hope ben bernanke uses jackson hole to put the blame back where it belongs on congress, on the president, on spending, regular fwlags, taxes. -- regulation and taxes. that's where the problems lie. my fear, art, and larry, too, i'm worried that he won't. everybody in washington wants to be the savior of the economy. when things finally get better they want the world to look back and say, oh, see, it was reagan and volker, ber nananke and rom

or obama. they want to go down in history as the person that saved us. the fed keeps pushing on the pedal. part of this is a political legacy they want. it really has nothing to do with the economy as a whole. >> art hogan, would you be a buyer or a seller now? >> in the marketplace i would be a buyer, but i wouldn't do it until after the month of september. i think we have gotten to this point in time where stocks are fairly valued. they are two multiple terms lower than last time. to brian's point last time we were two multiple points higher. stocks are fairly valued. we have to get through jackson hole. we certainly have to get through an ecb meeting that's the most important piece of the puzzle. the ecb being much more important than the next fomc meeting. after the ecb we have a clear

path to higher markets toward the end of the year. >> we have a lot of election risk, too. that's risk for another day. thank you. art hogan and brian westbury. up next on kudlow, over 1100 cases of west nile. 41 deaths, the largest outbreak on record. full details and more breaking news when we come back. [ male announcer ] how do you trade? with scottrader streaming quotes,

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dell warned yesterday that people are ditching pcs and now hp says i they see it happening, too. courtney reagan joins us with more on that and the latest breaking headlines coming into the cnbc newsroom. >> hewlett-packard lost nearly $9 billion in its third quarter. pc sales were down about 10%. jean claude yonker warned greece that it was looking at the last chance to avoid bankruptcy. greece wants more time to reach austerity targets from the eu and imf. west nile virus claimed 41 lives in the u.s. and the cdc reports. we have seen the spraying of dallas to limit mosquito transmission of west nile and texas has half the cases reported. cases have been reported in 38 states. also hard hit, mississippi, louisiana, oklahoma and south

dakota. overall the highest number of cases of west nile virus since it was first detected in the u.s. and gallup, the polling firm, was accused by the justice department with padding bills. they said gallup inflated budgets for survey work on millions of dollars worth of contracts. not padding the surveys but the bills. >> that's an odd story. very odd. thanks. we appreciate it. up next, gop veep candidate paul ryan delivers a powerful pro growth homerun speech today, hitting hard onball's imaginary recovery. the need for tax code over haul build this.s the president on the free market panel sounds off and critiques it. a special programming note for tomorrow night. i have an exclusive interview with congressman paul ryan. he'll join me here tomorrow evening. i'm looking forward to it. we'll be right back. at optionsxpress

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welcome back to "the kudlow report." i'm larry kudlow. in this half hour, media giant and former presidential candidate steve forbes unveils his book called "freedom manifesto." why free markets are moral and big government isn't. that's the story of the whole election. meanwhile missouri republican congressman todd akin hanging on after his inexcusable remarks about rape. one of the most powerful women in the senate will be here to tell us why he should get out of the race. but first up today, vice

presidential hopeful paul ryan delivered a powerful homerun of a speech. he hit the economy. he hit the tax code and he hammered home the message that, yes, mr. obama, we did build this. take a listen. >> we got 23 million people out of work, struggling to find work today. unemployment has been above 8% for 42 months. the real rate is more like 15%. this is president obama's imaginary recovery. it's not here. the tax code is a mess. we can lower everybody's tax rates, families and small businesses, compete and create jobs in this economy. that's one of the key ideas for economic growth. when he did say if you have a small business you didn't build that, someone else did, it tells us he believes in a government-centered society with a government-driven economy. that doesn't work. it never has worked. >> all right. i think he's putting out a strong economic message. just what the doctor ordered. he's hitting his stride. he'll have a huge convention

speech on wednesday. let's ask our guests what they think. we welcome henry blodgett, business insider, editor in chief. phil muser, gop consult and senior editor of the national review. henry, you're a discenter. what do you think of paul ryan? he thinks there is an imaginary recovery, the tax code is a mess and entrepreneurs did build their own businesses. >> the recovery is not imaginary. o it is weak. obama is calling for a tax cut. he wants to extend tax cuts for middle class folks. if you look at what's wrong with the economy it's not that the highest wage earners don't have money. there is money all over the place. the problem is that the middle class is broke. we have to get money to them. >> i don't thu think penalizing small business owners will help -- >> it's not penalizing at all. our tax rates are the lowest in

history. >> when you start a business do you -- you're the management. you're the boss. do you want your tax rates to go up? >> nobody likes a tax to go up. what fixes the economy is getting more income to the middle class. >> uh i think the corporate tax rate would be the best thing to do. what do you think about what paul ryan said? >> think the imaginary recovery line is a good political line. statistically we are in a recovery. politically we are not in the kind of recovery people actually feel and, you know, that's just a line when you hear from members of the administration from the democrats saying that the economy is growing, out's something that just rings false to most people. they know they are still hurting. >> what do you think? what do you think about this? here's the deal. ryan, out's interesting. there is a poll out. seniors like ryan. 60% of 65 and over. ryan invigorated the ticket.

i think he invigorated mitt romney. did you like the message you heard? you're a message expert. do you like the message? >> yes. it was the kudlow trifecta. you don't need to teach paul ryan how to talk about a growth message. he studied under jack kemp. he speaks the language in a clear and understandable way that middle class americans can understand. the romney campaign has been energized by the selection. ryan is like a boulder that's gathering velocity as he goes downhill. he's getting better on the stump. his polling is good. he's putting wisconsin back in play. he's been a big hit on the fund-raising circuit. as we go into tampa next week, the message of the campaign has been simplified. five core themes to get middle class jobs throw growing and working. the second coming of kemp in some ways that motivates the pro growth wing of the republican

party of which i am a part. >> yes. henry, i want to go to the paul ryan joe biden debate. joe biden is going to be in tampa. i don't know. maybe he's going to the beach. no one told him it was going to rain. but they are going to be the second debate. ryan versus biden. what do you think? >> look, ryan is appealing. the issue is that the romney-ryan plan is not going to help the economy. again, it is centered around giving bigger tax cuts to the highest earners in the down true. i'm sure it's great for them. romney promised it would be revenue uh neutral. so tax rates have to go up on the poorest americans. if they are saying, we are going to cut across the board 20% what will that do to the deficit which you have been talking about? >> it's a corporate tax cut, a

personal grind down on the rates. it has middle class preferences, an energy policy that favors keystone. it is regulatory break downs in tter trade capping at 20%. we're spending well beyond our means. cbo articulates it clearly. it is another data point that goes drip, drip, drip in the argument against the re-election of the president. i think they will prosecute it next week. >> it's a great idea that we have a spending cap. clearly congress is incompetent. they cannot control it. not next year. we cut it radically we'll crush the economy. >> go to the corporate tax rate. it's critical. >> i have been screaming about the corporate tax rate. i want ryan to talk about it. >> corporations only have the highest profit margins in history. uncertainty is not about policy. the uh economy is weak.

you have to get the money back in. >> you look at the small business survey. they talk about it. they talk about taxes and regulations. >> i can tell you it has nothing to do with it. we never base a decision on that. >> are they making enough on spending restraint? i know henry doesn't like that. it was austin goolsby's piece today in the wall street journal. it was part of the overall fiscal package. tax cuts, tax reform, middle class isn't going to pay higher taxes but to make a deficit neutral, spending which could run 7 or 800 billion dollars. are they getting the message out? that's the problem. >> the ticket is very strong on the long-term driver of our federal debt problem. that's medicare.

they are vague about meeting the cap. it's great to have a cap. i understand uh you don't necessarily want to lay out a detailed budget. out does leave people scratching their heads. >> are they too vague or will they be more specific in their convention speeches? the world is going to watch. you are talking 30, 40 million people watching the convention speeches. they have never had an audience remotely like that before including debates and so forth. do you expect more meat on the bones? >> most voters aren't policy wonks looking for detailed policies. they are looking for a sense that the ticket cares about things like getting health. if they can create that sense i think they will have done their job. >> you get the last word. have they nailed the mediscare

with the $700 billion stealing from medicare to put it into obamacare. this is a clever republican ploy better than republicans do. have they started gaining ground? >> i think one of the underlying messages of next week will be that the romney-ryan ticket isn't afraid to tackle tough choices. they have been aggressive in pushing back. this is a fight the romney campaign is happy to have a discussion over medicare. i don't think it will be the leading component of the message in tampa. going back to the previous segment we hear about people who build it. the accidental glimpse into obama's soul he let slip a month ago. we'll see it in tampa from people like chris christie, bobby jindal and others. romney and ryan will lay out a clear, simple, understandable five-point plan to bring back jobs to the country. that's the message. >> are those american flags on your tie? >> it is.

>> i want the camera to catch those. i just love that. you didn't have to show the label. >> sorry. >> i'll get one. >> product placement. >> the front page of the wall street journal. turns out team obama turned to the private equity folks at carlisle to help on the sunoco refinery. isn't thereypocrihypocrisy? >> the reason they are trying to bash it is some of what firms do is lay off people. out's hard to see romney saying we restructured this, i'm a job creator. but private equity absolutely has a place. restructure. >> carlisle is a great private equity firm. they may save the refinery and jobs. >> absolutely. >> it's hypocritical on the part of team obama. we'll leave it there.

henry, phil and ramesh, we appreciate it. programming note, tomorrow night i will be joined by mitt romney's vice presidential running mate -- paul ryan. next week i i will be coming to you live from the republican national convention in tampa, florida. looking forward to it. coming up next, the freedom manifesto. this election's referendum on big government, failed policies from the obama administration versus romney-ryan, free markets and entrepreneurship, i hope. steve forbes will lay it out from his new book. he's up next. [ obama ] i'm barack obama and i approve this message. [ male announcer ] you work hard. stretch every penny. but chances are you pay a higher tax rate than him... mitt romney made twenty million dollars in two thousand ten

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introducing cue in the all-new cadillac xts. the simplicity of a tablet has come to your car. ♪ the all-new cadillac xts has arrived. and it's bringing the future forward. november's election isn't just about who wins the white house or control of congress. it's about whether the country will double down on failed big government policies or put trust back in free markets and american entrepreneurship. here now is forbes media chairman steve forbes, author of an important new book "freedom manifesto, why free marks are moral and big government isn't." i have a million questions. why do you reckon free markets are moral and big government is not? >> free markets are about serving the needs and wants of

other people. it's not about greed. you only succeed if you provide something that somebody else wants. government is about force. government is about favoritism to particular constituencies. government portrays itself as caring. in the real world free markets care. if they don't, you fail as a business. >> is the government chock full of croneyism to the point it's just doling out favors whereas the free market model is wherever prices are and so forth. is government just so corrupt? >> yes. that's why we make the distinction between normal government and big government. big government serves its own needs. you see it in education. are they concerned about the kids? no. they are concerned about unions. it's about scarcity versus abundance. you get scarcity and higher prices. you see it in health care. by contrast, look at cell phones.

$399530 years ago. today, virtually free. free markets means turning scarcity into abundance. out means doling out favors to the few. that's why we have a chapter. apple versus solyndra. fedex versus the post office. >> you put this out on the eve of the election. in many ways the election will be all about this. was that the intent? >> yes. for the future as well. ronald reagan yet the forces of big government came back. why? since the depression, government has portrayed itself as caring. free markets don't work. they always go off the rails. so we have to reoccupy the high moral ground. it is free markets that break down barriers, that allow creativity. as lincoln put it, improve the lot in life. government stands in the way. short-sighted, selfish and a barrier to growth. >> speaking of that,

sort-sighted. isn't the tax code as much of actual croneyism and reforming the tax code should be priority one if you want any morality back in government. >> sure. it's immoral if you have a good representative in washington, good lobbyist, half the lobbying resolves around the tax code which is why it's been changed 14 times in the last century. you should get rid of the corrupt tax code, put in the flat tax or paul ryan's two rates. you could do it on a sheet of paper. low rates means incentive to grow. you are not punished to take a risk that work out. the thing to remember is not just risk taking it's everyone's success. the higher standard of living you create. look what steve jobs did. he became a billionaire. we all had a great higher standard of living because of what he produced.

>> he's an old friend of both of ours. what should i ask paul ryan. >> he's been great. he understands pro growth economics. understands the whole basis of freedom is not root canal economics, not throwing grandma off the cliff despite what democrats like to say but creating opportunity for all, for more people. one of the things you might ask him, as he understands it which few in washington understand is monetary policy. what the fed is doing now is government coercion. it takes arbitrarily from people, punishes savers and messed up the capital. >> helping large companies but not small companies. >> the perverse thing is by manipulating interest rates in a way they will throw you in jail in the private sector they hurt the allocation to small business. it all goes to the least resistance from the regulators. can't charge a price. if banks had to pay 3%, 4% for

money, suddenly a real market price for money don't you think they would beat the bushes to find people at 6% or 8%? >> the fed screwed it up. you want me to ask about monetary policy. >> yeah. >> you like his tax policy. >> sure. one rate. he's got -- i'll take that. >> how about mitt romney? should romney -- romney is not quite the tax reformer paul ryan is. should he adopt the plan of 10, 20? >> absolutely. one thing paul ryan understands, we talk about spending like it's an abstraction. that's taking resources from people. you take resources from people, put it in the political factory and politics where the resources go. one, that's immoral. two it hurts growth and the creation of more resources. >> absolutely. i always say that. people make fun of me. star of the beast. beast being the government. great stuff. his new book, the freedom mon fes to is available right now. coming up on kudlow, a fire

storm over missouri republican congressman todd akin and his abhorrent remarks about rape. what he said was terrible. it was inexcusable. everybody knows that. we'll ask one of the most powerful women in the senate why it's important he gets out of the race immediately. that's next up. at usaa, we believe honor is not exclusive to the military, and commitment is not limited to one's military oath. the same set of values that drive our nation's military are the ones we used to build usaa bank. with our award winning apps that allow you to transfer funds, pay bills or manage your finances anywhere, anytime. so that wherever your duty takes you, usaa bank goes with you. visit us online to learn what makes our bank so different.

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the todd akin controversy is muddying up the republican wish of keeping the election about jobs and the economy. in a moment we'll hear from one of the most powerful women in the u.s. senate. akin seems to care little about what his fellow republicans are saying. nbc steve handelsman joins us with details. good evening. >> good evening to you. muddying up is right. paul ryan and mitt romney personally have called akin to urge him to quit the missouri senate race. he's hanging in. they fear that could have a negative effect on their ticket and campaign. todd akin has lashed out at romney accusing his own party's standard bear of ramping out what akin calls his mistake. akin is still standing, he says, on his website. casting himself as an anti-abortion hero as he tries to raise money.

on "today" akin told matt lauer he only apologizes for saying he admits now incorrectly that women will not likely get pregnant if they are victims of what he called legitimate rape. >> while i apologize for the misuse of that word, at the same time i don't apologize for the fact that i am strong in my belief of pro-life. >> akin tweeted yesterday, i apologized but the liberal media is trying to make me drop out. in fact, most democrats want him to stay in so incumbent senator claire mchaskill can beat him in missouri. that's what she wants. >> the voters have spoken. he's the nominee. i'm going to run against akin and people will know he's outside the main stream, very extreme and i'm the senator that will be on their side. >> next week in tampa, republican leaders do not want

akin or the abortion issue to detract from, to interfere with, to distract in any way from the ryan-romney economic message. back to you. >> many thanks. steve handelsman set that up for us. let's go to kay bailey-hutchens. great to see you. as far as i can tell it's conservatives runninging him out of the race. not the libel ral media. everybody is embarrassed and horrified by what he said. >> yes. people are amazed that someone could say that. you assume that he believes what he's saying. it just doesn't have a place in the discourse today. larry, all of the things you have been saying on this show before now are what matter. we've got to be talking about the economy. we've got to have the votes to repeal obama care so we can get back to a health care system that will allow more access to

health care by more people, but not at the risk of ruining health care coverage for so many of the businesses that are not going to cover their employees. i'm one of those, i guess the dreaded establishment. but if we are going to get this country back on track economically we have to have strong voices in the senate that will stop the over regulation stifling small business. >> what are you going to do about this guy? can you run independent? john danforth again? this is a seat that could be pivotal in terms of the gop taking over the senate. i don't know if you saw senator claire mchaskill with her grin on her face. she wants to run against akin. maybe an independent republican.

>> i know there is still time for him to think so carefully about what we need to do for this country. it's a pivotal year. this is a watershed year for our country. does he really want to go in with the wounds that he has? maybe later he could recover and do something else and run for something else. but we are talking about the end of august and the election is in november. i just think we need our strongest ticket. we need our strongest candidate and we need to be talking about the obama record on the economy. and not getting sidetracked with someone who really has just made a huge mistake. >> how much might it hurt in missouri which is a very important swing state? it ought to be a republican state, but the question now is

how much is he, akin, going to hurt there? >> well, you see, i'm one that i don't want to tell people in missouri how to vote. that is their right and certainly i think if he said these comments before the primary, it would have had a different result. but i think he needs -- he is the one who can be big here. he is the one. it's not about his views on abortion. it's not about whether he's a stand-up guy. and doesn't crater. no. he should be thinking of the big picture. he should be thinking about the party, about mitt romney and paul ryan, about all the people in this country who want to change the direction and need the strength of a strong senate to do that. is he really at this point the best candidate and does he really believe that he is or woul he look for the greater good and maybe step awe side? let somebody else come in now and then maybe he could recover

later. >> thank you very much. senator kay bailey hutchenson we appreciate your view. tune in tomorrow night. i will be joined by republican vice presidential candidate paul ryan. uh look forward to the interview. that is it for this evening. mr. akin, do it for the good of the republican party? no. do it for the good of the country. we need to change direction. we need to keep the senate. think about that, buddy. you can't win after what you said. i'm kudlow. we'll be back tomorrow. it's something you're born with. and inspires the things you choose to do. you do what you do... because it matters. at hp we don't just believe in the power of technology. we believe in the power of people when technology works for you.

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